Miss T Says: Top 10 Reasons for Motor Claims Being Rejected

Whether you’re driving across the country to visit family, or just popping out to the shops, it’s important to know that your car insurance will cover you should you be involved in an accident.

You never know when you’re going to be involved in an accident, so to avoid having your insurance claim rejected, it’s important to make sure your policy information is up to date and that your car is in good mechanical condition and fully roadworthy.

Here are the 10 most common reasons for car insurance claims being rejected in South Africa:

1. Driving Recklessly or Under the Influence

Driving under the influence of alcohol or drugs is a criminal offence. Motorists caught driving under the influence risk having their cover immediately nullified. An insurance claim can also be rejected if a driver is believed to have acted in a reckless manner and this behaviour is believed to be the cause of damage or destruction to a vehicle.

2. Premiums Aren’t Up to Date

The simple rule of thumb: if you don’t pay your premium, you won’t be covered. When times are tough, the worst thing you can do is cut your insurance payments.

3. Unlicensed or Unspecified Drivers

When a motor insurance policy stipulates that cover is only provided for a specific named driver, an insurance claim will only be paid if this driver was driving at the time of the incident. The claim will also be rejected if the driver is not in possession of a valid driver’s licence at the time of the incident.

4. Unroadworthy Vehicles

The condition of your vehicle - such as broken windscreen wipers, missing mirrors, or a tyre tread below the legal limit of 1.6 mm - can significantly increase the likelihood of an accident occurring. If you’re involved in an accident and investigation reveals any pre-existing conditions, your insurance claim may be rejected because your vehicle was not roadworthy.

5. Personal or Business Use

When obtaining cover for your vehicle, you’ll be asked whether you use the car for personal or business use. If your car is used for business purposes, it’s assumed that you’ll be on the road more often - thereby increasing your risk. This increased risk affects your premium, and misrepresenting your use can void your claim.

6. Vehicle Not Parked Securely

Requirements for securely parking a motor vehicle differ between insurers. Some will accept off-street parking while others may insist the vehicle be kept behind an automatic garage door. Insurance premiums are calculated according to what level of security you’ve agreed to - ensure you’re adhering to the method you specified in your policy.

7. Vehicle Inspection Was Not Carried Out

It’s common practice for insurers to insist that a vehicle inspection be done to help determine any pre-existing damage when taking out a new policy. If this inspection is not carried out properly, you are in breach of contract and your claim may be rejected.

8. Leaving Keys in Plain Sight

This is viewed as the owner “failing to exercise due care” and you risk having a claim rejected if the vehicle is stolen. Some insurers even stipulate that theft cover is excluded if the ignition keys are left in, or on, the vehicle.

9. Misrepresentation of Underwriting Details

This would include misrepresentations made about the driver’s details, personal or business use, insurance claims history (such as drunk driving offences), and credit history, among others.

10. Lack of Insurable Interest

Insurable interest refers to the interest that a person has in an insured item. A person has an “insurable interest” in something when loss or damage to it would cause that person to suffer a financial loss. In simple terms, it means you can’t insure items that don’t belong to you - even if you pay the premium on the item. In such cases, the actual owner must take out the insurance themselves.

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At TaxiSure, we aim to work with you when settling claims. Should you be involved in any type of accident whilst on the road, please get in touch with us as soon as possible.